Italian PM wins confidence vote

Wednesday, December 14, 2016 - 01:22

Italian Prime Minister Paolo Gentiloni wins a confidence vote in the upper house Senate, allowing his coalition government to take office. As Ciara Lee reports, his most pressing issue will be staving off a banking crisis.

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A new coalition government in Italy gets the green light.
Italian Prime Minister Paolo Gentiloni winning a confidence vote in the upper house Senate.
Former leader Matteo Renzi resigned last week after losing a referendum on his proposed reforms.
Hoping to stave off political turmoil, the head of state asked Gentiloni, the outgoing foreign minister, to form a new cabinet.
(SOUNDBITE) (English) CO FOUNDER, SEVEN INVESTMENT MANAGEMENT, JUSTIN URQUHART STEWART, SAYING:
"The question is can the new prime minister actually start addressing any of those reforms or get confidence back so they can actually make sure that the debt position is being properly managed and they can still finance the debt. And also be in the position to try and make sure that you can start addressing the key issue in Italy which is the banking crisis."
Most pressing, Monte dei Paschi.
Its board reconvening on Thursday - sources claim the bank will decide whether it can launch a last-ditch attempt to raise 5 billion euros on the market.
The ECB rejected its request for more time to carry out the privately-funded capital raise.
Pressure now on the Italian government to inject money into the lender.
Gentiloni has re-appointed virtually all of Renzi's old ministers.
His administration might only last a few months though, with many party leaders pushing for elections in the first half of 2017.

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